Morgan Stanley Investment Management (MSIM) is appointing State Street Corporation to provide it with global outsourcing services on $300bn worth of assets, covering trade settlement, portfolio administration, and reporting and reconciliation services. As a result of this mandate, which builds on a 40-year relationship, State Street will assume approximately 100 employees from MSIM and will henceforth support MSIM's needs globally.
The new contract, which includes processing services and new products, covers the vast majority of MSIM's assets under management, which presently stand at $386bn.
Commenting on the large outsourcing award, Joanne Pace, chief operating officer of Morgan Stanley Investment Management, said: "We are very pleased to expand upon our long-standing partnership with State Street to ensure that MSIM remains well-positioned to deliver best-in-class investment operations and technology solutions to our investment teams and our clients."
"State Street is a recognised global leader in investment operations outsourcing and we are confident that our organisation and our clients will benefit from its leading technology systems, depth of resources and commitment to excellence in customer service," she added.
According to Jay Hooley, president and chief operating officer of State Street Corporation, during the period of rapid expansion seen within the global markets over the past decade, many investment managers' legacy technology systems fell behind and now need significant investment to keep pace with the servicing requirements of innovative new investment strategies. He is confident that State Street can place MSIM at the front of the pack, making it ready for increased globalisation and yet more complex strategies in the years head, giving it a competitive advantage over its rivals. "As one of the first providers to offer investment operations outsourcing services, State Street has a decade of experience in servicing some of the most complex and global books of business, and we look forward to building on this success," he commented.
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